Research Article
Fiscal Rules in A Context of New Consensus Macroeconomics and Economic Crisis: Lessons from Brazil and Spain
Carmen Díaz-Roldán1, Fernando Ferrari Filho2* and Julimar da Silva Bichara3
1University of Castilla-La Mancha, Ciudad Real, and Institute of International Economics, Spain
2Federal University of Rio Grande do Sul, Porto Alegre, and National Council for Scientific and Technological Development, Brazil
3Autonomous University of Madrid, Spain
Fernando Ferrari Filho, Federal University of Rio Grande do Sul, Porto Alegre, and National Council for Scientific and Technological Development, Brasília, Brazil.
Received Date: May 09, 2023; Published Date: May 24, 2023
Abstract
In this article we compare the economic performance of public finances in Brazil and Spain, which applied economic policies based on the New Consensus Macroeconomics (NCM). After reviewing some considerations of the NCM and Stability Growth Pact theoretical bases, we have compared the Brazilian and the Spanish macroeconomic policies and their results during the 2000s years. Finally, we have conducted a simulation exercise to investigate to which extent the use of explicit fiscal rules would have improved the macroeconomic performance in Brazil and Spain. We conclude that the more flexible performance of fiscal policies in Brazil seems to have been more successful than that of the stricter European fiscal requirements that guide the Spanish fiscal results.
Keywords:Macroeconomic policies; Fiscal rules; Economic crisis; Brazil; Spain
-
Carmen Díaz-Roldán, Fernando Ferrari Filho* and Julimar da Silva Bichara. Fiscal Rules in A Context of New Consensus Macroeconomics and Economic Crisis: Lessons from Brazil and Spain. Iris J of Eco & Buss Manag. 1(1): 2023. IJEBM.MS.ID.000503.
-
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.